What is a receiver of rents?

A receiver of rents is a neutral third party appointed by the court to collect rent payments from tenants living in or occupying a property under foreclosure. This official holds the collected funds in an escrow account and distributes them according to court order, typically prioritizing the lender's interests while the foreclosure proceeds.

Lenders commonly request a receiver of rents when foreclosing on multi-family properties, apartment buildings, or investment real estate that generates ongoing rental income. Without a receiver in place, tenants might direct payments to the property owner (the defendant in foreclosure), depleting assets that could otherwise satisfy the lender's judgment. A receiver also ensures the property remains maintained and insured during the foreclosure process by using rental income for necessary upkeep and property expenses.

In Greater Hartford foreclosure actions, the receiver of rents protects the lender's collateral value by preserving rental income and preventing the property owner from stripping assets before a judgment is entered. The court oversees the receiver's actions and accounting, and the receiver is bound by fiduciary duties to act fairly and transparently. Real estate litigation attorneys managing foreclosure cases frequently petition for appointment of a receiver of rents when income-producing properties are involved, making this a standard tool in Connecticut foreclosure practice.